OTT Impact on Advertising Industry

Back in time, have you ever imagined watching video content on another platform other than television? Never right? However, today that is not the case. The rise in technological advancement, smartphones and internet access made us achieve all. In this context, the advent of the OTT platforms has gained significant traction and is on a continuous journey to grow in numbers.

If we talk about OTT, it refers to consuming featured video content from linear television and the provider via the Internet. Over the Top is a symbol that goes beyond the Internet box and the television package or channels offered by default. OTT media platforms offer audiences the most excellent possible flexibility, as they can watch any show on any device, regardless of their Internet access provider. In fact, over time, exceptionally fast internet connections have made OTT accessible to all types of video formats.

As of July, there are around 57 OTT media service providers in India, as per the Ministry of Information and Broadcasting. Furthermore, the joint report by the Internet and Mobile Association of India (IAMAI) and data analytics firm Kantar reveals that a staggering 707 million Internet users in India are actively engaged with OTT platforms. Thus, with the rise in viewership comes opportunity for marketers: advertising on streaming platforms. So, let's delve into the OTT impact on the advertising industry, exploring the latest trends, benefits, and future directions.

Advertising on Streaming Platforms: A New Frontier

Undeniably, OTT platforms like Netflix, Zee5, and Amazon Prime have changed the way we consume content, and advertisers are taking note. This is where advertising on streaming platforms emerged as a trend, offering brands a unique opportunity to reach engaged audiences in a targeted and measurable way.

Just like OTT allows users to access video content, OTT advertising allows brands, advertisers, and consumers to meet directly online. It delivers ads without relying on traditional TV infrastructure, which caters to broad audiences with pre-scheduled ads, boosting viewer engagement in OTT ads.

OTT Advertising Trends

Personalisation and Targeting

OTT advertising trends are trending towards personalisation and targeting. Data and analytics enable marketers to develop targeted ad experiences that resonate with their target demographic. This method improves viewer engagement, resulting in improved conversion rates and increased ad spend efficiency.

Targeted Ads

Targeted ads on OTT services are game changers for brands. Using user data and preferences, advertisers may build highly relevant and engaging ad experiences. This level of targeting guarantees that ads reach the right individuals, at the right time, and in the appropriate context.

Digital advertising

The relationship between OTT and digital advertising is beneficial. As OTT platforms expand, they are becoming an essential component of digital advertising campaigns. This convergence allows marketers to design seamless, cross-platform campaigns that increase engagement and conversions.

OTT vs. Traditional TV Ads: What is Your Choice?

So, now that we've discussed OTT advertising, one question arises: which is better, OTT or traditional TV ads? When deciding between OTT and traditional TV ads, consider your target demographic and advertising goals. While traditional TV ads have a broad reach, OTT allows for more targeted and personalised advertising, making it a popular alternative for many firms trying to reach certain demographics.

Future of Advertising in OTT: Ad Spending on Streaming Platforms

The future of advertising in OTT looks bright, with innovation and growth on the horizon. Expect new ad formats, such as interactive ads and shoppable ads, to emerge. AI and machine learning will further enhance targeting capabilities, ensuring ads are even more relevant and engaging.

Furthermore, ad spending on streaming platforms is increasing, driven by the growing user base and the effectiveness of targeted ads. Brands are recognising the value of OTT advertising, allocating larger budgets to reach their target audience.

In a nutshell, the OTT impact on the advertising industry has been profound, offering brands new avenues to reach their target audience with precision and accuracy. As OTT continues to evolve, expect innovation, growth, and increased adoption of targeted ads on streaming platforms.